There are several parts to this problem, culminating with a Markov Chain.
So, I'll take it slow and only do the first part here.
The Problem
Imagine there are \(N\) switches in series to form a row of switches.
Then, put \(N\) such rows in parallel to form a sheet of \(N^2\) switches.
Finally, put \(N\) of these sheets in series, with a lightbulb, to form complicated circuit with
\(N^3\) total switches.
The above schematic shows what this circuit looks like when \(N=3\).
Each switch is, independently, open or closed, with probability \(p\).
What is the probability \(P_1(N,p)\) that the bulb will glow?
If the sheets are connected in parallel,
what is the probability \(P_2(N,p)\) that the bulb will glow?
Circuit Basics
The bulb will glow if the circuit is closed.
The circuit is closed if there is at least one unbroken path
from the negative terminal, through the switches, through the bulb, and to the positive terminal of the battery.
In a row of switches in series, all switches must be closed.
When the rows are connected in parallel, at least one row in the sheet must be closed,
but it is not necessary for all rows to be closed.
Similarly, when the sheets are connected in parallel, at least one must be closed.
When the sheets are connected in series, all sheets must be closed.
Analytical Solution
Now that we know how circuits work, we can start finding the exact solution. Let's start with the individual switches connected in series.
An individual switch has a probability \(p\) of being closed.
Now we connect \(N\) independent and identical switches in series.
The probability the whole series is closed is
$$
p_1 \times ... \times p_N = \color{#377eb8}{p^N}
$$
And the probability the series is open is just the opposite
$$1-\color{#377eb8}{p^N}$$
Now we connect \(N\) of these series in parallel to make a sheet.
If zero series are closed, then the sheet is open.
If more than zero series are closed (i.e. at least one is closed), then the sheet is closed.
The probability of zero series closed (all series open) is
$$(1-\color{#377eb8}{p^N})_1 \times ... \times (1-\color{#377eb8}{p^N})_N = \color{#d95f02}{(1-\color{#377eb8}{p^N})^N}$$
This is also the probability of the sheet being open.
And the probability the sheet is closed is the opposite
$$
1 - \color{#d95f02}{(1-\color{#377eb8}{p^N})^N}
$$
Almost there.
Finally, we connect \(N\) of these sheets to make an incredibly complicated circuit.
If we connect the sheets in series, all \(N\) sheets must be closed.
Like we did in the first step, we can multiply together the probabilities of each sheet being closed
$$
\begin{align*}
P_1(N,p)
&= (1 - \color{#d95f02}{(1-\color{#377eb8}{p^N})^N})_1 \times ... \times (1 - \color{#d95f02}{(1-\color{#377eb8}{p^N})^N})_N \\
&= \bf{[1 - (1-p^N)^N]^N}
\end{align*}
$$
If we connect the sheets in parallel, at least one sheet must be closed.
This one is trickier, because we need to think with opposites again.
The probability zero sheets are closed (all sheets open) is
$$
\color{#d95f02}{(1-\color{#377eb8}{p^N})^N}_1 \times ... \times \color{#d95f02}{(1-\color{#377eb8}{p^N})^N}_N = (\color{#d95f02}{(1-\color{#377eb8}{p^N})^N})^N
$$
And the probability more than zero sheets (at least one) are closed is the opposite
$$
P_2(N,p) = \bf{1 - (1-p^N)^{N^2}}
$$
Series vs. Parallel
The two probabilities look similar, but they are very different.
The plot below shows how \(P_1\) and \(P_2\) compare for different values of \(N\) and \(p\).
Connecting the sheets in parallel gives the bulb a much higher chance of glowing than connecting them in series, for any value of \(N\) and \(p\).
I added the red and blue lines to show two more scenarios: putting the \(N^3\) switches in parallel (red)
and putting the \(N^3\) switches in series (blue). The difference between series and parallel is more pronounced. It is extremely unlikely for the bulb to glow if the switches are in series, unless \(p\) is almost 1. Conversely, the bulb will almost always glow if the switches are in parallel, unless \(p\) is almost 0.
For a fixed \(p\), \(P_1\) decreases sharply as \(N\) increases. This makes sense because it becomes less likely that all the sheets are closed as we add more sheets to the series.
What I found surprising is that \(P_2\) increases first, then decreases after a certain \(N\). My interpretation is that when there are more sheets, it is more likely that at least one will be closed. However, each sheet also has \(N\) rows in series, and when a row gets longer, it is less likely all switches in the row will be closed. Eventually, the effect of longer series outweighs the effect of more sheets in parallel.
Note that \(P_1\) and \(P_2\) are equal to \(p\) when \(N=1\), because when \(N=1\), there is just one switch in the circuit.